Restaurant RealEstate

Phil Nelson, a die hard Thundering Herd fan, jumped into the real estate game at a young age. Phil started with a 3 plex while still in college. Phil partnered up with a friend (Jim Weiler) and grew a portfolio containing more than 125 units. Phil and Jim took a leap into commercial real estate starting with a development of an upscale unit complex. They later transitioned into doing deep rehab office building deals as well as other multi-unit commercial tenant deals! While we touch on Phil's beginnings, we dive deep into his experience with residential development and office buildings! Key TakeawaysBig lessons:- Know Your Market, Know Your Market, Know Your Market- Being slightly below market rent can lower expenses/stress and keep vacancy near 100%. - More units = more money to allocate to in-house management. - Have a great relationship with your local bank- Try to have potential commercial tenants lined up before purchase of a commercial building.- Understand potential commercial tenants needs- Opportunities are available even in less vibrant cities. - Buy for Cashflow- Renovate in pieces. Mitigate your risk. Biggest Mistake:- Trying to get the very best price. (Know when a deal is fair)Pros of development vs rehabbing existing properties:- Do not have the constraints that many older buildings have (ceiling heights, can't always knock down walls, etc)- Can develop/build for today's consumer tastesWhy Phil dove into real estate:- The attractiveness of real estate. Collecting rents from residents that pay your operating expenses, your mortgage, and you- Became too tiring to do it part-time with a small portfolio. How investing in commercial differs from small residential - Can be more difficult to fill units - much less maintenance/supervision/hands on- can be much more passiveWhy Phil doesn't hire 3rd party management:- Feels comfortable managing his own properties.- Better cashflow - Better response rate to tenantsWhat's next for Phil:- Building a house- Continue renovating commercial properties!!

If you are interested in either growing your restaurant brand or real estate portfolio, this podcast is for you. It is no-fluff, straight to the point format. Unlike many other podcasters, I am in the restaurant and real estate industry. My family founded a small chain of restaurants known as Tudor's Biscuit World. Between me and my family, we have experience in small condo-conversions, vacation-rentals, small commercial strip centers, small multi-family, and a few flip-and-rents. Real Estate Side: We will interview both real estate investors and professionals.Restaurant: We will interview franchisers, founders, franchisees, portfolio owners of independent restaurants, executives, etc. Why Restaurants and Real Estate?- Both have been proven for thousands of years, and aren't going away.- Both are known for making millionaires.

Everyone has heard of house hacking a multifamily property. But can you house-hack a single-family?Absolutely! In fact, it can be better with a single family.Zach, a recent Marshall University graduate, purchased a foreclosed property for a very low price in a nicer neighborhood. With the help of a contractor and a lot of sweat equity, Zach rehabbed the home for quite a low amount of money. Zach ended up creating about 100K in equity! His plan is to live in the property for 2 years and rent out 2 bedrooms to his friends. Learn some of the ins and outs of foreclosures.Learn how to avoid taxes on profit completely (Besides 1031 tax free exchange)Learn different types of mortgages Biggest lesson learned:"Grow some balls and do it!"Pros of SFH house hack:- Home Sales Exclusion: Tax Free profits. Can exclude up to 250K in profits from the sale of a home if the owner lives in the property for 2 years. - Still be able to rent bedrooms. - Despite living in 1 bedroom, the current market rent is 2/3 of the rent if Zach was not living there. - Split utilities - Can cash flow better if rooms are rentedCons of Multi-family house hack:- Only the unit the owner lives in can be used under the Home Sales Exclusion Act- Have to pay own utilities